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What Properties of eUSD Function Similarly to Money?
Money generally has four functions:
- A store of value
- A medium of exchange
- A unit of account
- A standard of deferred payment
eUSD has properties and use cases designed to serve these functions.
- eUSD as a Store of ValueA store of value is an asset that retains its value over time. Since eUSD is a stablecoin, it is designed to maintain its value even in volatile markets.
- eUSD as a Medium of ExchangeA medium of exchange is anything that represents a standard of value and facilitates the trade of goods or services. As a stablecoin, eUSD can be used worldwide for transactions.
- eUSD as a Unit of AccountA unit of account is a standardized measurement of value used to price goods and services (e.g., USD, EUR, YEN). eUSD currently has a target price of 1 USD (1 eUSD = 1 USD). While eUSD is not used as a standard measurement of value outside of the Lybra Protocol, it functions as a unit of account within the protocol and within some other blockchain dApps, where the accounting or pricing of dApp services is in eUSD rather than a fiat currency like USD.
- eUSD as a Standard of Deferred PaymenteUSD is used to settle debts within the Lybra Protocol (e.g., users utilize eUSD to repay loans and redeem their collateral assets).
- eUSD as an Interest-Bearing AsseteUSD holders can receive regular stable interest income on a daily/weekly basis, or they can stake eUSD to provide eUSD/ETH liquidity and earn staking rewards. By offering interest income, eUSD serves as an attractive option for users looking for stable value and potential returns on their holdings.